Investors in Thermo Fisher Scientific (NYSE:TMO) have seen returns of 15% over the past three years

Low-cost index funds make it easy to achieve average market returns. But in any diversified portfolio of stocks, you'll see some that fall short of the average. For example, the Thermo Fisher Scientific Inc. (NYSE:TMO) share price return of 14% over three years lags the market return in the same period. In the last year the stock price gained, albeit only 1.7%.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the three years of share price growth, Thermo Fisher Scientific actually saw its earnings per share (EPS) drop 1.0% per year.

While EPS is down but the share price is moving up, neither move is particularly drastic, suggesting the market was previously too pessimistic. Having said that, if the EPS falls continue we'd be surprised to see a sustained increase in share price.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).NYSE:TMO Earnings Per Share Growth November 2nd 2025

This free interactive report on Thermo Fisher Scientific's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Thermo Fisher Scientific shareholders are up 2.1% for the year (even including dividends). But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 1.7% over half a decade This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand Thermo Fisher Scientific better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Thermo Fisher Scientific you should know about.

If you like to buy stocks alongside management, then you might just love this freelist of companies. (Hint: many of them are unnoticed AND have attractive valuation).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

View Comments